Question

In an effort to reduce cost on auto insurance, Sophia has lowered each component of her current plan to the cheapest possible option. Sophia’s current insurance agency is Fret-No-More Auto Insurance, whose policy options are listed below. The annual premium for Sophia’s current policy is $511.31. What decrease in her annual premium will Sophia see after the change?

Fret-No-More Auto Insurance
Type of Insurance Coverage
Coverage Limits
Annual Premiums
Bodily Injury
$25/50,000
$21.35

$50/100,000
$32.78

$100/300,000
$42.10

Property Damage
$25,000
$115.50

$50,000
$142.44

$100,000
$193.78

Collision
$100 deductible
$490.25

$250 deductible
$343.33

$500 deductible
$248.08

Comprehensive
$50 deductible
$105.79

$100 deductible
$88.23
a.
$20.59
b.
$38.15
c.
$57.10
d.
$60.88

Answer 1

Choose the cheapest option in each category:
- Bodily Injury: $21.35
- Property Damage: $115.50
- Collision: $248.08
- Comprehensive: $88.23

New total = 21.35 + 115.50 + 248.08 + 88.23 = $473.16.
Decrease = 511.31 − 473.16 = $38.15.

Answer: (b) $38.15.